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The sector also faced wider macro headwinds, consisting of a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products bring in new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, allowing investors to adjust positions without substantial main productions or redemptions. While recent geopolitical occasions have resulted in more monetary pressure on GCC nations, the area remains resilient and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on international luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and prices during the quarter, it has actually driven more volume and interest in local properties.
In spite of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining favorable development momentum in the last few years. While disputes in the broader region and worldwide financial unpredictability stay a structural restriction, GCC countries have actually up until now limited their effect on domestic economic performance through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
Can Dubai Sustain Industrial Growth through 2026?The IMF's World Economic Outlook (October 2025) tasks global growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures targeted at bring in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in technology and AI-related infrastructure.
Can Dubai Sustain Industrial Growth through 2026?Public-sector investment and reform stay central to sustaining this pattern. Policy procedures aimed at bring in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.
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